Cement sector slump forces market take U-turn

KARACHI: After witnessing an increase of almost 1,800 in past three trading day market took breather seeing an overall depressive session. Negative stance in global equity exchanges showed its aftermaths on local market as well forcing it start in red zone. Cement sector remained under the hit as government interrogated regarding sudden increase in bag prices this led market to close below 34K.
The benchmark KSE-100 index closed lower by 195.00 point to close at 33,916.64 points. KSE All Share Index decreased by 17.31 to end at 23,920.30, KSE 30-Index dipped by 125.53 points to conclude at 14,956.29 whereas KMI 30-Index declined by 494.76 points to finish the day at 55,034.62 levels.
Muhammad Arbash at Topline Securities said in line with regional markets Pakistan equities turned negative with benchmark KSE100 Index closing at 33916.64 level down by 0.57%. Mix sentiments were seen in today’s trading session with profit taking in cements as the Government asked for explanation regarding the recent price hike by the sector. Textiles were in lime light on expectations of resumption in export orders as lockdown is expected to ease in many countries. Investor participation declined where traded volume and value decreased by 26% and 25% on DOD basis to 216mn shares and Rs.9.36bn respectively. MLCF was today`s volume leader with ~18.3mn shares.
The advance to decline ratio in the broader market remained in favor of bears. Out of 353 scrips, 155 scrips advanced, 178 declined while the value of 20 scrips remained intact.
The ready market volume decreased by 25.84 per cent to 216.619 million shares as compared to 292.087 million shares traded on last trading day.
Maple Leaf Cement Factory topped the list of actives, closed lower by Rs 0.80 at Rs 27.38 on 18.32 million shares followed by Hascol Petroleum Limited decreased by Rs 0.24 at Rs 14.94 on 13.61 million shares and Unity Foods Limited enhanced by Rs 0.36 at Rs 11.89 on 12.17 million shares.
Other actives were TRG Pakistan Limited which ascended by Rs 0.91 at Rs 18.56 on 11.46 million shares and K-Electric Pakistan declined by Rs 0.11 at Rs 2.90 on 10.37 million shares.
According to Research Desk at Aba Ali Habib Securities local bourse started the week on negative note, taking cue from global equities the benchmark KSE-100 index lost 195 points to settle the day at 33,916.64 level. The rising tension between the USA and China over the mishandling of virus and Trump’s threat to tear the trade deal triggered selling in regional markets while the local bourse witnessed spillover effect. This tension could restrict an economic recovery despite ease in lockdown. Moreover, SBP projected that GDP may contract by 2% to 3% if lockdown continues for 60 days, which dented investors sentiments. Further the concern over the MSCI review, which is due on 12th May, kept investors sideline as analysts anticipate that Pakistan may slip to frontier markets from emerging markets. During the session, the index found its support and resistance at 33,709.34 ppts and 34,163.92 ppts, respectively. Sector wise, heavy index cement sector remained in limelight throughout the trading session and fetched volume of 43.50mn share. Oil & Gas Marketing Companies (OMC) is the 2nd most traded sector which recorded total volume of 21.75mn shares followed by Technology & Communication which fetched volume of 21.67 million shares.
The overall market capitalization dipped by Rs 4.611 billion to Rs 6.3721 trillion against Rs 6.3767 trillion observed on last trading day.
Unilever Pakistan Foods Limited and Colgate Palmolive Limited remained the top gainer by Rs 650.00 and Rs 162.05 to close at Rs 9,850.00 and Rs 2,322.80 respectively, while Mari Petroleum Limited and Atlas Honda Limited were among the major losers which lost Rs 44.95 and Rs 22.00 to close at Rs 1,124.95 and Rs 350.00 respectively.